Despite supply chain pressures and delivery delays, the Farnborough Airshow saw an influx of plane orders on Tuesday. Airbus secured deals with Japan Airlines and Virgin Atlantic, while Boeing received an order from Macquarie Airfinance. Qatar Airways hinted at a significant order for wide-body jets towards the end of the year. Anticipations were low for substantial deal-making at this year's aviation industry event, given Airbus and Boeing's production backlog and supply chain challenges.
Delivery delays have constrained some airlines' capacity to capitalize on the post-pandemic travel surge, which some believe is waning. Virgin Atlantic's CEO, Shai Weiss, expressed surprise at the prolonged supply chain effects of Covid, as his airline ordered seven Airbus A330-900s, valued at $807 million. Boeing faced production cuts due to legal and regulatory issues following a mid-air incident with a 737 MAX 9 in January.
Japan Airlines confirmed an order for 20 Airbus A350-900s and 11 A321neo jets, totaling over $3 billion, with deliveries starting in 2028. Macquarie Airfinance ordered 20 Boeing 737 MAX-8 planes for 2029-2030 delivery, worth over $1 billion. Qatar Airways' CEO, Badr al Meer, announced a potential large order for wide-body jets by early 2025 and plans to extend the service life of its Airbus A380s with upgrades.
As jetmakers struggle with order fulfillment, airlines are opting to extend the lifespan of their existing fleets. Bain's recent report highlighted the longest-ever waits for engine maintenance due to the new aircraft shortfall, increasing airline costs. British Airways' CEO, Sean Doyle, noted vigilance regarding new plane deliveries but affirmed that current timelines were manageable.
